Oil – Daily Analysis

Oil declined further today, raising the question of whether this is only consolidation after the recent rally — or the start of something more durable. Speculation about SPR pressure is interesting, but our analysis stays with the technical evidence: candle signals, momentum, Elliott Wave structure, and critical levels. In today’s Oil Daily Analysis, we assess whether oil is still consolidating, preparing to extend the bullish move, or setting up for another rally attempt. CANDLES: Today, oil dropped sharply and technically confirmed at least a short-term top on the daily frame, while also forming a Bearish Engulfing on the 2D frame. However, despite the move, all short-term trends remain bullish and have not flipped yet. A very important test will likely come on Wednesday. Oil will attempt to negate the Three White Soldiers pattern on the 5D frame that was formed last week — a difficult task for the bears. Today’s…